Pub. L. 107-20, tit. II, ch. 2, sec. 2202

Sec. 2202. (a) Section 12102(c) of title 46, United States Code, as amended by section 202(a) of the American Fisheries Act (46 U.S.C. 12102 note), is amended— (1) in paragraph (2)(B) by striking “or the use” and all that follows in such paragraph and inserting in lieu thereof “or the exercise of rights under loan or mortgage covenants by a mortgagee eligible to be a preferred mortgagee under section 31322(a) of this title, provided that a mortgagee not eligible to own a vessel with a fishery endorsement may only operate such a vessel to the extent necessary for the immediate safety of the vessel or for repairs, drydocking or berthing changes.”; and (2) by striking paragraph (4) and renumbering the remaining paragraph accordingly. (b) Section 31322(a)(4) of title 46, United States Code, as amended by section 202(b) of the American Fisheries Act (Public Law 105–277, division C, title II) is amended by striking paragraph (4)(B) and all that follows in such paragraph and inserting in lieu thereof the following:115 STAT. 169 “(B) a state or federally chartered financial institution that is insured by the Federal Deposit Insurance Corporation; “(C) a farm credit lender established under title 12, chapter 23 of the United States Code; “(D) a commercial fishing and agriculture bank established pursuant to State law; “(E) a commercial lender organized under the laws of the United States or of a State and eligible to own a vessel under section 12102(a) of this title; or “(F) a mortgage trustee under subsection (f) of this section.”. (c) Section 31322 of title 46, United States Code is amended by adding at the end the following new subsections: “(f)(1) A mortgage trustee may hold in trust, for an individual or entity, an instrument or evidence of indebtedness, secured by a mortgage of the vessel to the mortgage trustee, provided that the mortgage trustee— “(A) is eligible to be a preferred mortgagee under subsection (a)(4), subparagraphs (A)–(E) of this section; “(B) is organized as a corporation, and is doing business, under the laws of the United States or of a State; “(C) is authorized under those laws to exercise corporate trust powers; “(D) is subject to supervision or examination by an official of the United States Government or a State; “(E) has a combined capital and surplus (as stated in its most recent published report of condition) of at least $3,000,000; and “(F) meets any other requirements prescribed by the Secretary. “(2) If the beneficiary under the trust arrangement is not a commercial lender, a lender syndicate or eligible to be a preferred mortgagee under subsection (a)(4), subparagraphs (A)–(E) of this section, the Secretary must determine that the issuance, assignment, transfer, or trust arrangement does not result in an impermissible transfer of control of the vessel to a person not eligible to own a vessel with a fishery endorsement under section 12102(c) of this title. “(3) A vessel with a fishery endorsement may be operated by a mortgage trustee only with the approval of the Secretary. “(4) A right under a mortgage of a vessel with a fishery endorsement may be issued, assigned, or transferred to a person not eligible to be a mortgagee of that vessel under this section only with the approval of the Secretary. “(5) The issuance, assignment, or transfer of an instrument or evidence of indebtedness contrary to this subsection is voidable by the Secretary. “(g) For purposes of this section a ‘commercial lender’ means an entity primarily engaged in the business of lending and other financing transactions with a loan portfolio in excess of $100,000,000, of which not more than 50 per centum in dollar amount consists of loans to borrowers in the commercial fishing industry, as certified to the Secretary by such lender. “(h) For purposes of this section a ‘lender syndicate’ means an arrangement established for the combined extension of credit of not less than $20,000,000 made up of four or more entities 115 STAT. 170that each have a beneficial interest, held through an agent, under a trust arrangement established pursuant to subsection (f), no one of which may exercise powers thereunder without the concurrence of at least one other unaffiliated beneficiary.”. (d) Section 31322 of title 46, United States Code as amended in this section, and as amended by section 202(b) of the American Fisheries Act (Public Law 105–277, division C, title II) shall not take effect until April 1, 2003, nor shall the Secretary of Transportation, in determining whether a vessel owner complies with the requirements of section 12102(c) of title 46, United States Code, consider the citizenship status of a lender, in its capacity as a lender with respect to that vessel owner, until after April 1, 2003. (e)(1) Section 213(g) of the American Fisheries Act (Public Law 105–277, division C, title II) is amended by— (A) striking “October 1, 2001” both places it appears; (B) striking “such date” and inserting in lieu thereof “or if the percentage of foreign ownership in the vessel is increased after the effective date of this subsection”; and (C) striking “such vessel” the first time it appears and inserting “their ownership or mortgage interest in such vessel on that date” in lieu thereof. (2) Section 213(g) of the American Fisheries Act (Public Law 105–277, division C, title II) shall take effect on the date of enactment of this Act.